School Buses

[JT2307]

Can school bus owners still take the 4136 - fuel tax credit? I believe so but I am getting some conflicting information.

Thank you.

[ChEAr$]

Can school bus owners still take the 4136 - fuel tax credit? I believe so but I am getting some conflicting information.

Thank you.

Isn't that credit meant just for off road usage? And aren't school buses driven on the road?

[Bees Knees]

There are a number of nontaxable uses of fuel other than for off-highway road use. According to page 2 of the instructions for Form 4136, School buses are code 7, meaning they qualify for the credit. Enter 7 in column (a) for type of use.

[JT2307]

Help me think this thru - if they write off the fuel on Schedule C and they take the credit isn't that a double benefit or not because it is a refundable credit - maybe I am thinking this through too much.

[Bees Knees]

Help me think this thru - if they write off the fuel on Schedule C and they take the credit isn't that a double benefit or not because it is a refundable credit - maybe I am thinking this through too much.

Its not a double benefit.

The cost of the fuel is deducted on Schedule C in the year paid (2012). A credit is taken on the 2012 tax return for the federal fuels tax paid, which is included in the amount deducted on Schedule C. The refund of the federal fuels tax (the credit claimed) is received in 2013, the year the 2012 tax return is filed.

Thus, the refund of the 2012 credit is received in 2013, the year following the deduction, and thus is claimed as other income on the 2013 Schedule C.

[JT2307]

Thanks

Thanks - clear now

[oceanlovin'ea]

I didn't know individuals owned school buses. I thought the county owned the school buses. Where does this happen and how? Just curious.

Linda, EA

[BP.]

I thought the county owned the school buses. Where does this happen and how?

In our school district, the school bus operator is a for-profit private company contracted by the district to provide transportation.